[The following information applies to the questions displayed below.)At the beginning of the year, Foster & Long Company bought machinery, shelving, and a forklift. The machinery initiallycost $31,600 but had to be overhauled (at a cost of $2,400) before it could be installed (at a cost of $1,200) and finally putinto use. The machinery's total life was estimated as 40,000 hours, with an estimated residual value of $1,000. Themachinery was actually used 5,000 hours in year 1 and 7,000 hours in year 2. Repair costs were $500 in each year.The shelving cost $10,050 and was expected to last 5 years, with a residual value of $750. The forklift cost $17,550 andwas expected to last six years, with a residual value of $2,300.5. Compute double-declining-balance depreciation expense for years 1 and 2 for the forklift. TIP: Remember that the formula fordouble-declining-balance uses cost minus accumulated depreciation (not residual value).Year 1Year 2Double-declining-balance (The following information applies to the questions displayed below.}At the beginning of the year, Foster & Long Company bought machinery, shelving, and a forklift. The machinery initiallycost $31,600 but had to be overhauled (at a cost of $2,400) before it could be installed (at a cost of $1,200) and finally putinto use. The machinery's total life was estimated as 40,000 hours, with an estimated residual value of $1,000. Themachinery was actually used 5,000 hours in year 1 and 7,000 hours in year 2. Repair costs were $500 in each year.The shelving cost $10,050 and was expected to last 5 years, with a residual value of $750. The forklift cost $17,550 andwas expected to last six years, with a residual value of $2,300.4. Compute year 2 straight-line depreciation expense for the shelving and give the journal entry to record it.Complete this question by entering your answers in the tabs below.Req 4AReq 48Compute year 2 straight-line depreciation expense for the shelving.Year 2 straight-lne depreciation expense

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(The following information applies to the questions displayed below.) At the beginning of the year, Foster & Long Company bought machinery, shelving, and a forklift. The machinery initially cost $31,600 but had to be overhauled (at a cost of $2,400) before it could be installed (at a cost of $1,200) and finally put into use. The machinery's total life was estimated as 40,000 hours, with an estimated residual value of $1,000. The machinery was actually used 5,000 hours in year 1 and 7,000 hours in year 2. Repair costs were $500 in each year. The shelving cost $10,050 and was expected to last 5 years, with a residual value of $750. The forklift cost $17,550 and was expected to last six years, with a residual value of $2,300. 4. Compute year 2 straight-line depreciation expense for the shelving and give the journal entry to record it. Complete this question by entering your answers In the tabs below. Req 4A Req 48 Compute year 2 straight-line depreciation expense for the shelving. Year 2 straight-ine depreciation experse

(The following information applies to the questions displayed below.) At the beginning of the year, Foster & Long Company bought machinery, shelving, and a forklift. The machinery initially cost $31,600 but had to be overhauled (at a cost of $2,400) before it could be installed (at a cost of $1,200) and finally put into use. The machinery's total life was estimated as 40,000 hours, with an estimated residual value of $1,000. The machinery was actually used 5,000 hours in year 1 and 7,000 hours in year 2. Repair costs were $500 in each year. The shelving cost $10,050 and was expected to last 5 years, with a residual value of $750. The forklift cost $17,550 and was expected to last six years, with a residual value of $2,300. 4. Compute year 2 straight-line depreciation expense for the shelving and give the journal entry to record it. Complete this question by entering your answers In the tabs below. Req 4A Req 48 Compute year 2 straight-line depreciation expense for the shelving. Year 2 straight-ine depreciation experse

Century 21 Accounting General Journal

11th Edition

ISBN:9781337680059

Author:Gilbertson

Publisher:Gilbertson

Chapter19: Accounting For Plant Assets, Depreciation, And Intangible Assets

Section: Chapter Questions

Problem 1CP

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Sand River Sales has a fork truck used in its warehouse operations. The truck had an original useful life of five years. However, after depreciating the asset for three years, the company makes a major repair that extends the life by four years. What is the remaining useful life after the major repair?
Utica Machinery Company purchases an asset for 1,200,000. After the machine has been used for 25,000 hours, the company expects to sell the asset for 150,000. What is the depreciation rate per hour based on activity?
During the current year, Arkells Inc. made the following expenditures relating to plant machinery. Renovated seven machines for $250,000 to improve efficiency in production of their remaining useful life of eight years Low-cost repairs throughout the year totaled $79,000 Replaced a broken gear on a machine for $6,000 A. What amount should be expensed during the period? B. What amount should be capitalized during the period?
During the current year, Arkells Inc. made the following expenditures relating to plant machinery. Renovated five machines for $100,000 to improve efficiency in production of their remaining useful life of five years Low-cost repairs throughout the year totaled $70,000 Replaced a broken gear on a machine for $10,000 A. What amount should be expensed during the period? B. What amount should be capitalized during the period?
Grandorf Company replaced the engine in a truck for 8,000 and expects the new engine will extend the life of the truck two years beyond the original estimated life. Related information is provided below. Cost of truck 65,000 Salvage value 5,000 Original estimated life 6 years The truck was purchased on January 1, 20-1. The engine was replaced on January 1, 20-6. Using straight-line depreciation, compute depreciation expense for 20-6.
Montello Inc. purchases a delivery truck for $15,000. The truck has a salvage value of $3,000 and is expected to be driven for 120,000 miles. Montello uses the units-of-production depreciation method and in year one it expects to use the truck for 23,000 miles. Calculate the annual depreciation expense.
Dunedin Drilling Company recently acquired a new machine at a cost of 350,000. The machine has an estimated useful life of four years or 100,000 hours, and a salvage value of 30,000. This machine will be used 30,000 hours during Year 1, 20,000 hours in Year 2, 40,000 hours in Year 3, and 10,000 hours in Year 4. With DEPREC5 still on the screen, click the Chart sheet tab. This chart shows the accumulated depreciation under all three depreciation methods. Identify below the depreciation method that each represents. Series 1 _____________________ Series 2 _____________________ Series 3 _____________________ When the assignment is complete, close the file without saving it again. Worksheet. The problem thus far has assumed that assets are depreciated a full year in the year acquired. Normally, depreciation begins in the month acquired. For example, an asset acquired at the beginning of April is depreciated for only nine months in the year of acquisition. Modify the DEPREC2 worksheet to include the month of acquisition as an additional item of input. To demonstrate proper handling of this factor on the depreciation schedule, modify the formulas for the first two years. Some of the formulas may not actually need to be revised. Do not modify the formulas for Years 3 through 8 and ignore the numbers shown in those years. Some will be incorrect as will be some of the totals. Preview the printout to make sure that the worksheet will print neatly on one page, and then print the worksheet. Save the completed file as DEPRECT. Hint: Insert the month in row 6 of the Data Section specifying the month by a number (e.g., April is the fourth month of the year). Redo the formulas for Years 1 and 2. For the units of production method, assume no change in the estimated hours for both years. Chart. Using the DEPREC5 file, prepare a line chart or XY chart that plots annual depreciation expense under all three depreciation methods. No Chart Data Table is needed; use the range B29 to E36 on the worksheet as a basis for preparing the chart if you prepare an XY chart. Use C29 to E36 if you prepare a line chart. Enter your name somewhere on the chart. Save the file again as DEPREC5. Print the chart.
In September, Morrison purchased a new piece of machinery that will be used to manufacture its top selling product. The purchase price of the machine was $2,215. In addition, Morrison also paid: freight, $200; installation, $570; testing , $900; and repairs due to mishandling, $300. Ignoring the depreciation expense, at what cost should the machinery be recorded on the balance sheet?
Finch, Inc., has purchased a new server and must decide what to do with the old one. The cost of the old server was originally $60,000 and has been depreciated $45,000. The company has received two offers. One offer was to lease the equipment for $7,000 for the next five years, but the company will be required to provide maintenance and insurance totaling $3,000 per year. The other offer was made to purchase the equipment outright for $18,500 less a 5% sales commission. Prepare a differential analysis. If required, use a minus sign to indicate a loss. Differential AnalysisLease (Alternative 1) or Sell (Alternative 2) Server Lease Server(Alternative 1) Sell Server(Alternative 2) DifferentialEffects(Alternative 2) Revenues $fill in the blank 1 $fill in the blank 2 $fill in the blank 3 Costs fill in the blank 4 fill in the blank 5 fill in the blank 6 Profit (loss) $fill in the blank 7 $fill in the blank 8 $fill in the blank 9 Which offer should Finch, Inc., accept?
Can you please look at this problem and tell me how i am getting the question with the x wrong and give me the solution Perdue Company purchased equipment on April 1 for $77,760. The equipment was expected to have a useful life of three years, or 7,560 operating hours, and a residual value of $2,160. The equipment was used for 1,400 hours during Year 1, 2,600 hours in Year 2, 2,300 hours in Year 3, and 1,260 hours in Year 4. Required: Determine the amount of depreciation expense for the years ended December 31, Year 1, Year 2, Year 3, and Year 4, by (a) the straight-line method, (b) units-of-activity method, and (c) the double-declining-balance method. Note: FOR DECLINING BALANCE ONLY, round the multiplier to four decimal places. Then round the answer for each year to the nearest whole dollar. a. Straight-line method Year Amount Year 1 $fill in the blank 1 Year 2 $fill in the blank 2 Year 3 $fill in the blank 3 Year 4 $fill in the blank 4 b. Units-of-activity method…
On January 1, Phil’s Burgers purchased a burger making machine at a cost of $400,000. The delivery, installation and set up costs were $25,000. The company expects the machine to be productive for 5 years and have a residual value of $50,000 at the end of its useful life. calculated the depreciation using the double declining method
On January 1, 1990, Alamo Steel Company purchased three used delivery trucks at a total cost of P630,000. Before placing the trucks in service, the company spent P22,000 painting them, P8,000 replacing their tires, and P40,000 overhauling their engines and reconditioning their bodies. Alamo management estimates that the trucks will remain in service for six years and have a residual value of P160,000. The trucks’ combined annual mileage is expected to be 18,000 miles in each of the first 4 years and 14,000 miles in each of the next two years. a) Prepare a depreciation schedule using double declining balance and using service output method b) What is the book value of the trucks at the end of 1993 using the straight line method.